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U.S. Federal Reserve holds key interest rate steady

(Xinhua)
Updated: 2009-08-13 02:59

WASHINGTON：The U.S. Federal Reserve said on Wednesday that the U.S. economic activity is "leveling out," and decided to keep a key interest rate unchanged at a record low of between zero and 0.25 percent to prop up the economy.

Information received recently suggested that "economic activity is leveling out," the Fed said. But it also noted that "economic activity is likely to remain weak for a time."

In recent weeks, conditions in financial markets have improved further, said the central bank in a statement following its two- day policy-making meeting in Washington.

Meanwhile, "household spending has continued to show signs of stabilizing but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit," it said, adding that "businesses are still cutting back on fixed investment and staffing but are making progress in bringing inventory stocks into better alignment with sales."